2020 Retailers in trouble thread

[survivalist]

Newc said:

st. Forgot about the shells. Only problem is... does anyone know how to use them?

[jakesmith]

PeteinSQ said:

I dont really understand panic buying this time. Supply chains have shown they can cope and everyone has seen that. I'm certainly not going to panic, a few days of idiots going nuts and the shelves will fill back up again.

I'm ashamed to say we bought 14.5kg of pasta in March.
Still have 7kg left now
We just don't eat a lot of pasta
No panic buying for me!

[LaurasOtherHalf]

All hands on deck at one of my businesses today. I’ll be 8am to 9pm to try and get customers sorted.

Probably the same tomorrow and Wednesday and then it’s switch the fuse board off again.

I honestly don’t know when we’ll be allowed to re-open, the beginning of December feels a long way away, but a very short time to try and affect the numbers with regards to infections.

VAT bill due in 10 days time from our trading post lockdown 1, rent due on the 25th of December for Q1 of 2021, all with no cash flow.

Maybe we should have borrowed more?

Without more handouts I can’t see us lasting past the end of the year. It’s a shame, nearly 15 years of business wiped out, young staff that’ll struggle to get employed anywhere else.

[Louis Balfour]

LaurasOtherHalf said:

All hands on deck at one of my businesses today. I’ll be 8am to 9pm to try and get customers sorted.

Probably the same tomorrow and Wednesday and then it’s switch the fuse board off again.

I honestly don’t know when we’ll be allowed to re-open, the beginning of December feels a long way away, but a very short time to try and affect the numbers with regards to infections.

VAT bill due in 10 days time from our trading post lockdown 1, rent due on the 25th of December for Q1 of 2021, all with no cash flow.

Maybe we should have borrowed more?

Without more handouts I can’t see us lasting past the end of the year. It’s a shame, nearly 15 years of business wiped out, young staff that’ll struggle to get employed anywhere else.

Sorry to hear this.

Can you call the VAT people and tell them you cannot pay? They must be expecting it.

[egor110]

LaurasOtherHalf said:

All hands on deck at one of my businesses today. I’ll be 8am to 9pm to try and get customers sorted.

Probably the same tomorrow and Wednesday and then it’s switch the fuse board off again.

I honestly don’t know when we’ll be allowed to re-open, the beginning of December feels a long way away, but a very short time to try and affect the numbers with regards to infections.

VAT bill due in 10 days time from our trading post lockdown 1, rent due on the 25th of December for Q1 of 2021, all with no cash flow.

Maybe we should have borrowed more?

Without more handouts I can’t see us lasting past the end of the year. It’s a shame, nearly 15 years of business wiped out, young staff that’ll struggle to get employed anywhere else.

How do you re book people for this ?

Try and squeeze in this week and next weeks customers then those that are due a cut during lock down get first dibs when you re open ?

I guess if this lock down extends and hair salons go out of business more will freelance and just work under the radar to make ends meet.

[anonymous-user]

You might need to make some savage cuts.

[loafer123]

LaurasOtherHalf said:

All hands on deck at one of my businesses today. I’ll be 8am to 9pm to try and get customers sorted.

Probably the same tomorrow and Wednesday and then it’s switch the fuse board off again.

I honestly don’t know when we’ll be allowed to re-open, the beginning of December feels a long way away, but a very short time to try and affect the numbers with regards to infections.

VAT bill due in 10 days time from our trading post lockdown 1, rent due on the 25th of December for Q1 of 2021, all with no cash flow.

Maybe we should have borrowed more?

Without more handouts I can’t see us lasting past the end of the year. It’s a shame, nearly 15 years of business wiped out, young staff that’ll struggle to get employed anywhere else.

At the risk of being controversial, surely the VAT is due from a period during which you were trading, and therefore should have been set aside. One weeks trading prior to paying it was never going to work.

[Anonymous-poster]

loafer123 said:

At the risk of being controversial, surely the VAT is due from a period during which you were trading, and therefore should have been set aside. One weeks trading prior to paying it was never going to work.

You do remember they had to shut for 4 months in the previous lockdown and just maybe their income and cash flow might have been affected?

[anonymous-user]

Anonymous-poster said:

You do remember they had to shut for 4 months in the previous lockdown and just maybe their income and cash flow might have been affected?

I believe the point may be that you ought not use VAT you've collected as cashflow. That's perhaps a slightly harsh view in light of circumstances and the government's own previous stance on VAT payment deferral.

[Deep Thought]

loafer123 said:

LaurasOtherHalf said:

All hands on deck at one of my businesses today. I’ll be 8am to 9pm to try and get customers sorted.

Probably the same tomorrow and Wednesday and then it’s switch the fuse board off again.

I honestly don’t know when we’ll be allowed to re-open, the beginning of December feels a long way away, but a very short time to try and affect the numbers with regards to infections.

VAT bill due in 10 days time from our trading post lockdown 1, rent due on the 25th of December for Q1 of 2021, all with no cash flow.

Maybe we should have borrowed more?

Without more handouts I can’t see us lasting past the end of the year. It’s a shame, nearly 15 years of business wiped out, young staff that’ll struggle to get employed anywhere else.

At the risk of being controversial, surely the VAT is due from a period during which you were trading, and therefore should have been set aside. One weeks trading prior to paying it was never going to work.

With respect i think the guy is fire fighting trying to keep his business afloat and we're not really in normal times here are we?


I just had this pop up last week in my accounts pacakge. Not sure if it is relevant to / can help LaurasOtherHalf...

Accounting Package said:

Because you pay VAT and Income Tax

If you deferred paying your VAT bill to 31st March 2021, you can pay the bill in 11 interest-free instalments during the 2021-22 financial year, rather than in a single payment

Edited by Deep Thought on Monday 2nd November 08:23

[Stay in Bed Instead]

RonaldMcDonaldAteMyCat said:

I believe the point may be that you ought not use VAT you've collected as cashflow. That's perhaps a slightly harsh view in light of circumstances and the government's own previous stance on VAT payment deferral.

I agree.

When a business goes bust it's amasing how much they always seem to owe HMRC though.

[Anonymous-poster]

RonaldMcDonaldAteMyCat said:

Anonymous-poster said:

You do remember they had to shut for 4 months in the previous lockdown and just maybe their income and cash flow might have been affected?

I believe the point may be that you ought not use VAT you've collected as cashflow. That's perhaps a slightly harsh view in light of circumstances and the government's own previous stance on VAT payment deferral.

Most small buisiness use VAT as cash flow at some point and considering that Boris was assuring everyone that another lockdown was not on the agenda due to “we must keep the economy moving” surely it’s not inconceivable that buisiness owners maybe thought their income stream would allow them to refill the VAT pot before it was due?

[Digga]

Deep Thought said:

I just had this pop up last week. Not sure if it is relevant to / can help LaurasOtherHalf...

Accounting Package said:

Because you pay VAT and Income Tax

If you deferred paying your VAT bill to 31st March 2021, you can pay the bill in 11 interest-free instalments during the 2021-22 financial year, rather than in a single payment

Yes, we only found out about this last week because our management/audit accountant was in doing q3 figures and pointed it out to us.

To be fair, you can't yet apply for this deferral, but it's got to be worth many businesses doing so, even if they are not necessarily struggling, as you can always elect to pay it off.

[Stay in Bed Instead]

Deep Thought said:

I just had this pop up last week. Not sure if it is relevant to / can help LaurasOtherHalf...

Accounting Package said:

Because you pay VAT and Income Tax

If you deferred paying your VAT bill to 31st March 2021, you can pay the bill in 11 interest-free instalments during the 2021-22 financial year, rather than in a single payment

I was disappointed that HMRC aren't also offering that for the self assessment tax due at the end of Jan 2021.

[Gecko1978]

RonaldMcDonaldAteMyCat said:

Anonymous-poster said:

You do remember they had to shut for 4 months in the previous lockdown and just maybe their income and cash flow might have been affected?

I believe the point may be that you ought not use VAT you've collected as cashflow. That's perhaps a slightly harsh view in light of circumstances and the government's own previous stance on VAT payment deferral.

This is true dont spend your VAT as its not your money. As self employed person myself I stick by this rule.....however given COVID and a choice of paying VAT or eating I think I know what I would do.

Tax in the UK is set up to cripple paye payers into a life of work and service. Ltd tax has been smashed with ir35, and sole traders are no better off. So legally sure pay the tax, morally who gives a fk.

[Saweep]

Gecko1978 said:

RonaldMcDonaldAteMyCat said:

Anonymous-poster said:

You do remember they had to shut for 4 months in the previous lockdown and just maybe their income and cash flow might have been affected?

I believe the point may be that you ought not use VAT you've collected as cashflow. That's perhaps a slightly harsh view in light of circumstances and the government's own previous stance on VAT payment deferral.

This is true dont spend your VAT as its not your money. As self employed person myself I stick by this rule.....however given COVID and a choice of paying VAT or eating I think I know what I would do.

Tax in the UK is set up to cripple paye payers into a life of work and service. Ltd tax has been smashed with ir35, and sole traders are no better off. So legally sure pay the tax, morally who gives a fk.

I know so many people who believed the govt.

The took bounce back loans, they re-invested, they stuck it out. They were prepared to fight. They bounced back a little bit.

Now they're shutting again with no more funds available, debts they didn't have in March and don't really know what the future holds.

This 2nd lockdown just feels like the end from the way many are talking.

I wouldn't be paying any taxes either in this scenario. I'd be making sure my family could survive the winter.

[Tyre Smoke]

I'm parked in the centre of a small market town in Devon. Looking around me it's not looking good. A bistro/wine bar looks to have already closed. Hair salons, florists, it's going to be like a ghost town on Thursday.

How many of those businesses reopen is anyone's guess.

[Bullett]

I was buying a sofa in M&S over the weekend.
The ladies we spoke to said they had taken on zero seasonal staff and had let at least 4 go from the homewares department alone.

This morning speak to my builders, they are worried not about safety but about supplies. One guy said plaster is all gone and other stuff not much better. Luckily for us they got the board and plaster they needed for our job in last week but he and his mate have pretty much had every job cancelled after ours and even if they were not cancelled then there are no materials.
We may end up with a cave. If the factories shut down I will have no windows and no kitchen. And in an apparent absurdity, windows fitters do not classify as construction so can't work.

[king arthur]

Stay in Bed Instead said:

Deep Thought said:

I just had this pop up last week. Not sure if it is relevant to / can help LaurasOtherHalf...

Accounting Package said:

Because you pay VAT and Income Tax

If you deferred paying your VAT bill to 31st March 2021, you can pay the bill in 11 interest-free instalments during the 2021-22 financial year, rather than in a single payment

I was disappointed that HMRC aren't also offering that for the self assessment tax due at the end of Jan 2021.

I thought they were?

[jammy-git]

Gecko1978 said:

RonaldMcDonaldAteMyCat said:

Anonymous-poster said:

You do remember they had to shut for 4 months in the previous lockdown and just maybe their income and cash flow might have been affected?

I believe the point may be that you ought not use VAT you've collected as cashflow. That's perhaps a slightly harsh view in light of circumstances and the government's own previous stance on VAT payment deferral.

This is true dont spend your VAT as its not your money. As self employed person myself I stick by this rule.....however given COVID and a choice of paying VAT or eating I think I know what I would do.

Tax in the UK is set up to cripple paye payers into a life of work and service. Ltd tax has been smashed with ir35, and sole traders are no better off. So legally sure pay the tax, morally who gives a fk.

Absolutely this.

If my company was right up against it and I had the choice between laying off people or deferring a VAT payment I know what I would rather do. I also know I would much rather keep the company going and salaries paid for an extra month or two and go under owning HMRC, rather than shut up sooner and owe them nothing.